Issue - meetings

To seek Council’s approval for the revised HR policy (Pensions & Pensions Discretions Policy) (report of the Assistant Director – Corporate enclosed).

Consideration was given to the report of the Assistant Director – Corporate which sought Council’s approval for the revised HR policy (Pensions and Pensions Discretions Policy)

The Portfolio Holder – Corporate and Environmental Services introduced the report and the following main points were highlighted:

• The policy was a statutory requirement under the Local Government Pension Scheme (LGPS) regulation and set out how the Council would apply certain discretionary powers relating to pensions;
• The policy had been developed by PSPS and had been considered by the Readers’ Panel, including officers and trade union representatives, as well as by the Policy Development Panel; and
• Approval of the policy would strengthen consistency across the partnership, safeguard compliance, and provide a fair and transparent approach to pension-related decisions. 

Members queried the meaning of ‘mandatory’ within the ‘discretionary’ policy. The Head of HR and Organisational Development explained that certain matters were classed as mandatory discretions under the LGPS framework and must be included in the Council’s policy.

DECISION:

That the HR policy (Pensions and Pensions Discretions Policy) be approved.

To seek Policy Development Panel’s views on the proposed HR policy (Pensions & Pensions Discretions Policy) prior to report to Council (report of the Assistant Director – Corporate enclosed).

Consideration was given to the report of the Assistant Director – Corporate which sought Policy Development Panel’s proposed HR policy (Pensions & Pensions Discretions Policy) prior to report to Council.

The Group Manager – Organisational Development presented the report and highlighted that:

• The policy aimed to ensure legal compliance, reflect best practice, and support consistent workforce management both within South Holland District Council and across the South & East Lincolnshire Councils Partnership.
• The Local Government Pension Scheme (LGPS) required the Council to publish and maintain a clear statement on how it applied certain employer discretions. The policy set out the Council’s approach, balancing flexibility for employees with financial prudence.

• A case-by-case approach for areas such as flexible retirement and actuarial reductions, allowed the Council to support staff appropriately while managing cost exposure.
• Alignment across the Partnership to simplify administration and ensure consistency.
• Endorsement of the policy by a Readers Panel, which included officers, trade union representatives (local and regional), and the Senior Leadership Team.

Members considered the report and made the following comments:

• Members acknowledged the complexity of the policy and its importance in ensuring clarity and fairness for staff.
• Members asked about the broader review of local government pension schemes and whether administrative amalgamation was being considered.
  • The Head of HR and Organisational Development confirmed that while discussions had taken place, any changes would require legislative reform. The current policy aligned mandatory discretions across the three councils.

• A question was raised about the percentage of pension funds invested in the UK and its impact on funding schemes.
  • The Head of HR and Organisational Development explained that each council retained its own fund, which was part of a wider pooled arrangement. The triennial review was ongoing, and performance was currently satisfactory, with outputs expected between September and February.
• Members asked whether the policy directly affected staff and how it was being communicated.
  • The Head of HR and Organisational Development clarified that while the discretionary elements were technical, the main policy would be published, and senior managers would ensure staff understood its relevance.

• A question was posed about changes from the previous version.
  • The Head of HR and Organisational Development noted that South Holland had not previously had a formal pensions policy. The new document clarified what was changing and what remained the same and had been developed with input from experts and other councils.
• Members queried the “85-year rule”.
  • The Head of HR and Organisational Development explained that this rule allowed for retirement without actuarial reduction if the sum of an employee’s age and years of service equalled 85. The policy allowed flexibility to switch this provision on or off depending on individual circumstances.

Councillor M Le Sage left the meeting at 19.42pm.

AGREED:

That following consideration of the Policy, the comments and feedback of the Panel be noted.